Senate Banking Committee Chairman Christopher Dodd (D., Conn.) seeks to create a new agency to supervise all federally chartered financial institutions, taking powers away from the Fed and the Federal Deposit Insurance Corp., among other agencies. Mr. Dodd’s proposal aims to narrow the central bank’s purview so it focuses more closely on monetary policy.
On Friday, November 13th Deputy Treasury Secretary Neal Wolin commented on the importance of retaining the Federal Reserves oversight powers saying the Federal Reserve “is the agency best equipped for the task of supervising the largest, most complex firms.”
But Mr. Dodd, while introducing his bill last Tuesday his new supervisory agency, “will have a mechanism in place to safely shut down large failing companies without destabilizing the entire financial system.”
Thanks Christopher Dodd! You’re a genius. Just what we need — another Federal Reserve!Published in